China stocks edge down despite signs of economic recovery

SHANGHAI, April 6 (Reuters) - China's main share indexes
edged down on Wednesday but stayed close to their highest levels
since early January as the latest survey on the country's
service sector activity provided fresh evidence of a nascent
economic recovery.

The blue-chip CSI300 index fell 0.2 percent, to
3,257.53, while the Shanghai Composite Index lost 0.1
percent, to 3,050.59 points, staying comfortably above 3,000
points - a level many see as psychologically important.

On Tuesday, the two indexes closed at their highest since
Jan. 8.

Activity in China's service sector strengthened last month,
according to the Caixin/Markit services purchasing managers'
index (PMI), which in March rose to 52.2 from February's 51.2.

March's moderate expansion in the service sector, which
follows rises in January-February industrial profits and PMI,
lends support to belief that China's economy is improving on the
back of Beijing's supportive measures.

The Shenzhen market outperformed its Shanghai peer
on Wednesday, drawing some support from expectations the
Shenzhen-Hong Kong Stock Connect will be launched soon. UBS
expects the investment scheme will be kicked off "over the next
few months".
(Reporting by Samuel Shen and Pete Sweeney; Editing by Richard
Borsuk)